At least 1,600 people with learning disabilities are to be moved from NHS institutions back into their own homes under new plans announced today.

The move will spell the end of "campuses" within the community, where many people have lived for years.

The scheme will make available £175m to rehouse people, with the community campuses to be closed by 2010.

Ivan Lewis, the care services minister, said today that the campuses were not giving people the opportunity to develop important social skills or the freedom to make daily decisions.

"This announcement will bring to a close one of the darkest chapters in our nation's history," he said. "Putting people with learning disabilities in hospitals and large-scale institutions was a scandal which disfigured our society.

"People who are neither a danger to themselves or others have the right to live in the community." The charity Mencap welcomed the plan. "People with a learning disability should have the opportunity to make choices about where and how they live," said its chief executive, Dame Jo Williams.

"The funding provides the incentive for primary care trusts, in conjunction with local authorities, to get on with closure plans, so people with a learning disability can live their lives the way they want, within their community."

Each person will receive an individual assessment and formal plan for their future care. Local authorities and primary care trusts will bid for some of the cash on offer to provide housing and daycare facilities.

Mr Lewis said: "Every individual will receive high quality support at a level required to ensure they have a full life. No one will be left isolated and vulnerable." Campus living The number of people living in NHS campuses in each strategic health authority area South West - 317 South Central - 123 South East Coastal - 101 London - 250 Eastern - 254 East Midlands - 260 West Midlands - 195 Yorkshire and Humber - 37 North East - 66 North West - 6 Source: voluntary data gathered by valuing people support team regional advisors.